PLEASE ANSWER ASAP

Problem 1.

Panta Company was authorized to issue 12%, 8-year bonds payable with face amount of P8,000,000 on April 1, 2022. Interest on the bonds payable is payable semi-annually on April 1 and October 1 of each year. The bonds were sold to underwriters on April 30, 2022 at 107. The entity amortized discount or premium on bonds payable only at the end of the fiscal year, using the straight-line method.

Required:

1. How much is the net cash received from the bond issuance? Show your solution and encircle your final answer.

2. Prepare journal entries for 2022 and 2023 including adjustments at the end of each year. Assume that accruals, if any, are recorded every yearend.

a. Use memorandum approach

b. Use journal entry approach

Problem 2.

On April 1, 2022, the Naive Company issued at 99 plus accrued interest, 2,000 of 8% P1,000 face value bonds. The bonds are dated January 1, 2015, mature on January 1, 2032, and pay interest on January 1 and July 1. The entity paid bond issue costs of P70,000. The entity amortized discount or premium on bonds payable only at the end of the fiscal year, using the straight-line method.

1. How much is the net cash received from the bond issuance? Show your solution and encircle your final answer.

2. Using the memorandum approach, prepare journal entries for 2022.